On Tuesday, July 6, here’s everything you need to know:
As Americans return from their long weekend and the ISM Services PMI is released, the US dollar stays weak. The Australian dollar is trailing the New Zealand dollar following a mixed RBA decision, while oil is rising following OPEC’s failure. The pound’s reopening has been criticized, and EUR/USD traders are looking at German data.
Dollar depreciation: Despite the fact that 10-year US Treasury yields are at 1.44 percent, well above its lows, the greenback has continued to fall as a result of the Nonfarm Payrolls report. Gold, with a price of over $1,800, has been one of the big winners.
The S&P 500 futures have stabilized ahead of the return of trading after the lengthy Independence Day weekend. Last week, American stocks reached new highs.
On Tuesday, the ISM Services Purchasing Managers’ Index for June will be the focus. The headline is expected to fall from 64 points in May, but it will still represent strong growth. Inflation expectations, as reflected by the Prices Paid component, will be scrutinized by investors.
Why the inflation component of the ISM Services PMI might drive a dollar rally
The Reserve Bank of Australia maintained its policy and indicated that it will continue to buy bonds after September, albeit at a lesser pace. The AUD/USD pair rose ahead of the release and has been steadily increasing its gains, approaching 0.76. However, it trails NZD/USD, which took advantage of USD weakness to hit 0.71, a gain of more than 1%.
OPEC+ members failed to reach an agreement at the end of their long meeting, leaving crude output unchanged. Market experts predicted a 400-500 thousand barrel per day increase. WTI Crude has resumed its upward trend, approaching $77 per barrel. The Canadian dollar has benefited as well.
The United Kingdom is reopening: Despite a spike in COVID-19 cases linked to the Delta type, UK Prime Minister Boris Johnson announced the lifting of all restrictions on July 19. The GBP/USD exchange rate is hovering around 1.39, and Markit’s Construction PMI is of importance.
Despite concerns about the spread of the Delta strain across Europe and a 3.7 percent dip in German Factory Orders, the EUR/USD is trading near 1.19. The ZEW Economic Sentiment Index will be released soon.
After falling on Monday, cryptocurrency prices are rising on Tuesday. Bitcoin is nearing $35,000, while Ethereum is hovering around $2,300.
More: Shiba Inu prices are consolidating to maintain their 38 percent gain.
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